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Chola MS Zero Depreciation Car Insurance
Everything loses value as it gets older, and your car is the same. This loss of value over time is called depreciation. When your car’s value goes down, the amount you get from an insurance claim also goes down. This is because the insurance company subtracts the depreciation cost while paying the claim.
So, even if your car is only 3 - 4 years old, its value may be about 25% less than the original price because of depreciation. This means you will get a lower claim amount. You can avoid this loss by buying the Cholamandalam Zero Depreciation Add-On. With this add-on, the insurance company will not reduce any money for depreciation, and you get a higher claim amount.
Note: You can only purchase the Zero-depreciation add-on with a comprehensive car insurance policy.
Cholamandalam Zero Depreciation Add-on Benefits
- 01
Higher Claim Amount
With the Zero Depreciation add-on, you do not have to pay for depreciation. The insurance company pays the full approved repair cost without cutting money for the car’s age. This means you get a higher claim amount.
- 02
Multiple Claims Even for Older Cars
With this add-on, you can make up to 2 claims in one policy period. The add-on is also available for cars that are up to 5 years old. So, if you take a 1-year policy every year, you can make up to 10 claims in 5 years.
Motor Insurance Plans By Cholamandalam
Depreciation Rate of Car- Without and With Chola MS Zero Depreciation Add-On
| Age of Car | Without the Zero Depreciation add-on | With the Zero Depreciation add-on |
|---|---|---|
| Under 6 months | Nil | 0% |
| 6 months to 1 year | 5% | 0% |
| 1 to 2 years | 10% | 0% |
| 2 to 3 years | 15% | 0% |
| 3 to 4 years | 25% | 0% |
| 4 to 5 years | 35% | 0% |
| 5 to 10 years | 40% | 0% |
| More than 10 years | 50% | 0% |
Depreciation Rates According to the Parts of the Car
| Parts of a Car | Without Zero Depreciation | With Zero Depreciation |
|---|---|---|
| Rubber/Nylon/Plastic parts | 50% | 0% |
| Fibre Glass Parts | 30% | 0% |
| Glass Parts | Nil | 0% |
Disclaimer: The given depreciation rates in the above tables are indicative. Check your policy document to get the exact terms and conditions.
FAQs
The cost of this add-on depends on your car’s value and its age. However, the company will pay a maximum of Rs. 20,000 per part, and this add-on is only for cars up to 5 years old.
No. The Zero Depreciation add-on does not apply if your car is totally damaged or stolen. To get the full showroom price in such cases, you need to buy the Invoice Cover add-on.
No. This add-on does not cover engine damage. If you want protection for the engine, you must buy the Engine Cover add-on.
Yes. With Zero Depreciation, the insurance company pays the full cost of repairing or replacing plastic, fiber, and rubber parts without cutting money for depreciation.
No. This add-on is only available for cars up to 5 years old. Cars older than 5 years cannot get this cover.